Updated 3 months ago on . Most recent reply
First Investment sold
Investment Info:
Single-family residence fix & flip investment in Junction City.
Purchase price: $67,672
Cash invested: $25,000
Sale price: $144,000
Bought in 2018 near base using a VA loan to start our investing journey while avoiding capital gains tax. Lived in the home for three years while completing major upgrades including wood-look tile throughout, a new deck, water heater, bathroom and kitchen improvements, updated light fixtures, and fresh paint. Rented it for one year before selling at a profit, gaining equity, rental income, and hands-on renovation experience.
What made you interested in investing in this type of deal?
We were interested in this deal because it allowed us to use our VA loan benefits to purchase a home with no down payment while starting our real estate investing journey. The location was near base in a quiet neighborhood with strong potential for resale or rental. The home needed updates, giving us the chance to build equity through renovations while living there. Our plan was to stay at least two years, complete improvements, and sell without paying capital gains tax.
How did you find this deal and how did you negotiate it?
Local real estate agent.
How did you finance this deal?
VA Loan.
How did you add value to the deal?
We replaced all floors with wood-look tile, built a new deck, installed a new water heater, upgraded the bathroom and kitchen, updated light fixtures, and applied fresh paint inside and out. These improvements modernized the home, increased appeal to renters and buyers, and boosted market value.
What was the outcome?
We lived in the home for three years, then rented it for one year before selling at a profit. Meeting the two-out-of-five-year residency requirement allowed us to take advantage of the capital gains tax exclusion. This deal built equity, provided rental income, and gave us hands-on renovation experience.
Lessons learned? Challenges?
Lessons Learned - Buying with a clear strategy, using available benefits to lower upfront costs, and focusing on high-impact upgrades can significantly boost value.
Challenges - Balancing renovations with daily life while working full-time and managing our first rental came with a learning curve, but it built our confidence for future deals.